Hyderabad: In an interim order that may result in more litigation on cases Enforcement Directorate (ED), a Division Bench of Telangana The High Court has stayed the proceedings against the Bengaluru-based Indus Viva Health Sciences The company is presently being heard by the Adjudicating Authority Prevention of Money Laundering Act (PMLA).
The petitioner has challenged the ability of the adjudicating authority to come to a valid decision as it was acting without absolute quorum.
The ED had attached assets of the company in cases related to multi-level marketing and is awaiting confirmation of the attachment by the judicial authority.
Chief Justice’s Bench Ujjwal Bhuyan And Justice CV Bhaskar Reddy heard the petition filed by CEO Abhilash Thomas and found prima facie force in his counsel’s argument. mayank jain who argued that the adjudicating authority under PMLA should be a bench and not just an officer with no judicial experience.
“The judicial authority confirms or denies the annexures made by the ED. Its actions will have punitive consequences for the parties involved. Therefore, the adjudicating authority must consist of at least two members. There should be one member (judicial) and The second member should be technical. In the present case, the chairperson (non-judicial member) of the adjudicating authority is hearing the case and there is no judicial member. In fact, a non-judicial member cannot become the chair.” Jain Told.
However, the bench said that it is only staying the proceedings before the judicial authority and not the annexures for now. But all the orders passed by the adjudicating authority are now under a cloud and are likely to be challenged in future on grounds of lack of quorum.
The petitioner has challenged the ability of the adjudicating authority to come to a valid decision as it was acting without absolute quorum.
The ED had attached assets of the company in cases related to multi-level marketing and is awaiting confirmation of the attachment by the judicial authority.
Chief Justice’s Bench Ujjwal Bhuyan And Justice CV Bhaskar Reddy heard the petition filed by CEO Abhilash Thomas and found prima facie force in his counsel’s argument. mayank jain who argued that the adjudicating authority under PMLA should be a bench and not just an officer with no judicial experience.
“The judicial authority confirms or denies the annexures made by the ED. Its actions will have punitive consequences for the parties involved. Therefore, the adjudicating authority must consist of at least two members. There should be one member (judicial) and The second member should be technical. In the present case, the chairperson (non-judicial member) of the adjudicating authority is hearing the case and there is no judicial member. In fact, a non-judicial member cannot become the chair.” Jain Told.
However, the bench said that it is only staying the proceedings before the judicial authority and not the annexures for now. But all the orders passed by the adjudicating authority are now under a cloud and are likely to be challenged in future on grounds of lack of quorum.